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This new change has come into force to all types of accounts.
There will be no penalty (penalty) for not having a minimum average balance in the Punjab National Bank (PNB) bank account. The bank has abolished the need to keep the minimum average balance from 1 July. This new change has come into force to all types of bank accounts.
Earlier, PNB, like many banks, used to charge a fine from its customers for not having minimum average balance. These fines were different based on the type of account and geographical location (urban, semi-urban or rural branches). The fine was from Rs 10 to Rs 600 or more.
What is minimum average balance? The minimum average balance is the average amount that should stay in your bank account every month. In an easy language, the bank wants that there is always some money in your account, so that the account continues and the bank is easy to maintain it.
Think of it like this:
- Every day the balance in your account, its average of a month is extracted.
- Suppose, the bank says that the minimum average balance in your account should be Rs 5000. This means, at the end of the month when the average of your daily balance will be withdrawn, it should not be less than 5000 rupees.
- Example: If you keep 10,000 rupees for 10 days, and the remaining 20 days 2,000 rupees, then the bank will participate in the number of months by adding the balance of all days to extract the average balance.
How to remove average?
Suppose the month is 30 days:
- 10 days × 10,000 = 1,00,000
- 20 days × 2,000 = 40,000
- Total = 1,40,000
- Average = 1,40,000 ÷ 30 = around Rs 4,667
Now, if the bank’s MAB is Rs 5,000, and your average is Rs 4,667, then you are breaking the rules. Because of this, the bank can charge a penalty from you.
Minimum average balance does not have to be kept in SBI The country’s largest government bank State Bank of India i.e. SBI also does not pay any penalty for not having minimum average balance. Most private banks have to have a minimum average balance.